The success of any firm depends on its ability not only to create value for stockholders but also to mitigate risks which adversely affect value. The Risk Management and Insurance (RMI) curriculum focuses on identifying financial and economic characteristics of risks to which firms and individuals are exposed, and developing effective strategies for managing such risks.
An RMI degree can create excellent opportunities for creative work, professional recognition, financial reward, and public service. Increasingly, non-financial companies are recognizing the importance of enterprise-wide risk management and thus are turning to business schools for trained risk managers. There are also a variety of career opportunities in the financial service industries such as insurance, banking, pensions, and investment management. RMI graduates serve as risk analysts within the business community and government; as underwriters, claims adjusters and marketing, planning, governmental relations, and financial management professionals for insurers; as brokers/agents providing professional risk management counseling and market placement services for clients; and as personal financial planners. For more information regarding RMI careers, see https://www.insuremypath.org/careers-in-insurance/insurance-career-roles. Also see “Why an Insurance Career?”
RMI majors are required to take the principles course in risk management and insurance (FIN 3305) and a total of three elective RMI courses. As a twelve-hour major, RMI can be easily added as a second major, adding specialty focus to a complementary degree. For suggested degree pairings, see the document entitled “RMI as a Second Major” at https://blogs.baylor.edu/rmi/rmi-as-a-second-major/.
Here are some brief descriptions of the topics covered in each of the five Risk Management and Insurance (RMI) courses offered at Baylor University:
Required Course: FIN 3305 Principles of Risk Management and Insurance
An examination of the techniques for managing pure risks in order to maximize the value of a firm. The course contrasts the risk preferences of corporations with that of individuals, and explores the implications of differing preferences on insurance purchase decisions. The characteristics of insurance as a tool in the process of managing both corporate and personal risk exposures are emphasized.
Elective Courses (pick three out of the following four electives)
FIN 4311 Fundamentals of Life and Health Insurance
A study of the financial implications of death, disability and retirement, as well as the corresponding forms of individual life insurance, health insurance and annuities. Elementary life and health insurance programming, taxation, legal aspects, business uses of individual life and health insurance, regulation, and insurer operations and functions are covered.
FIN 4320 Fundamentals of Property and Liability Insurance
A study of the various types of commercial risks common to businesses of all sizes and the types of property-liability insurance that are available for managing such risks, including commercial property insurance, business income insurance, commercial crime insurance, equipment breakdown insurance, inland and ocean marine insurance, commercial general liability (CGL) insurance, commercial automobile insurance, workers compensation insurance, employers liability insurance, and specialty coverages.
FIN 4332 Employee Benefit Planning
A survey of the most common employee benefits, including cash and stock compensation, employer provided group-life and group-health insurance benefits, qualified and non-qualified deferred compensation and retirement plans, and other benefits such cafeteria plans, educational reimbursement, disability, and employer-provided leave. The approach focuses on regulatory, income tax, and compensation theory aspects of each topic.
FIN 4335 Business Risk Management
This course offers an integrated approach to risk management by combining concepts, tools, and techniques from finance and related disciplines such as economics and the decision sciences. The course focuses attention on the identification, evaluation, pricing, and management of risk from personal as well as corporate perspectives. Topics covered include how to characterize and measure risk attitudes, compare and price risk, evaluate the effects that risk has upon stakeholder incentives and firm value, etc.
To earn a major in Risk Management and Insurance, a student must attain at least a “C” in FIN 3309 (Introduction to Finance) or FIN 3310 (Introduction to Corporate Finance). Other than taking FIN 3305 (Principles of Risk Management and Insurance) as the first course (recommended), there is no requirement that courses for a Risk Management and Insurance major must be taken in a specific sequence. The Department strongly recommends, however, that any student desiring to major in Risk Management and Insurance take FIN 3309 or FIN 3310 as soon as possible in their junior year.
For more information about the RMI Major and a suggested semester schedule, click here.